Microsoft and OpenAI strike truce after months of tense negotiations

Microsoft and OpenAI say they have reached a preliminary deal to advance their collaboration, an apparent detente between the firms that could ease the startup’s path towards shifting its structure to include a for-profit ￰0￱ chairman Bret Taylor said Thursday that the nonprofit will retain control of a new public benefit corporation while securing an equity stake worth at least $100 ￰1￱ noted the stake would make the nonprofit “one of the most well-resourced philanthropic organizations in the world.” “OpenAI started as a nonprofit, remains one today, and will continue to be one — with the nonprofit holding the authority that guides our future,” Taylor said in the ￰2￱ indicate that the $100 billion stake, which stands for about 20% of the value of OpenAI, is a floor and is prone to ￰3￱ the announcement, Microsoft shares rose about 2.4% in extended ￰4￱ and OpenAI strike truce after months of tense negotiations Microsoft and OpenAI have engaged in discussions for months about advancing their relations, partly to secure Microsoft’s assent for restructuring the ￰5￱ return for massive financial backing, Microsoft can use OpenAI’s AI tools in its products.

Microsoft’s involvement has been a key obstacle to OpenAI’s restructuring plans. Still, Microsoft and OpenAI didn’t disclose the terms of the new contract and said that the current agreement was ￰6￱ firms noted on Thursday that they had signed a “non-binding memorandum of understanding (MOU) for the next phase of our collaboration.” They noted they are “actively working to finalize contractual terms in a definitive agreement. Together, we remain focused on delivering the best AI tools for everyone, grounded in our shared commitment to safety.” This concludes a tense summer of negotiations between the two companies, which grew so strained at one point that OpenAI considered turning to antitrust regulators to exit the ￰7￱ to keep control with $100B stake in new for-profit entity A few weeks ago, Microsoft released the first of its large language models developed under ￰8￱ was trained on 15,000 Nvidia Corp.

H100 chips. Cutting-edge models from Meta Platforms Inc., Alphabet Inc.’s Google, and Elon Musk’s xAI used clusters six to 10 times larger, Suleyman added, suggesting that Microsoft created its model more ￰9￱ aims to take a multimodel approach across its products, letting customers choose the AI models they prefer, CEO Satya Nadella ￰10￱ this week, The Information reported that the company plans to integrate Anthropic models into some ￰11￱ is finalizing the ownership structure of its planned for-profit entity, but still needs approval from regulators in California and ￰12￱ company said the nonprofit will retain control and hold a stake worth over $100 billion, potentially making it one of the world’s largest philanthropies — though it remains uncertain when those funds could actually be ￰13￱ is contending with a growing list of opponents actively seeking to block its restructuring effort or intervening with regulators in hopes its nonprofit mission remains ￰14￱ of those involved is billionaire Elon Musk, Meta Platforms, and various advocacy ￰15￱ has already taken Apple and OpenAI to ￰16￱ earlier reported by Cryptopolitan , the lawsuit, filed in the ￰17￱ Court for the Northern District of Texas by Elon Musk’s AI startup xAI, follows the company’s takeover of social media platform X through a stock swap earlier this ￰18￱ alleges that OpenAI is leveraging its influence to “collude” and block rivals from competing in smartphones and generative ￰19￱ team claims Apple deliberately favors OpenAI by embedding ChatGPT into iPhones, iPads, and Macs, pushing alternatives like xAI’s Grok down App Store ￰20￱ to the suit, the Apple-OpenAI partnership is structured to shut out competing super apps and AI chatbots, giving the two companies a shared edge they deny to ￰21￱ Difference Wire helps crypto brands break through and dominate headlines fast